MOSCOW, February 12 – RIA Novosti. The Central Bank of the Russian Federation does not rule out point surges in prices, in particular in the service sector, as restrictions are lifted due to the coronavirus, said the head of the regulator Elvira Nabiullina during a press conference on Friday.
“The recovery in economic activity may be uneven and characterized by point spikes in prices in certain segments,” she said.
For example, she said, with the lifting of restrictions in the service sector, which was most affected by the pandemic, an increase in demand in the event of insufficient supply growth “could act as a temporary pro-inflationary factor.”
“The scale and duration of its action will depend on the new balance of supply and demand, the behavior of the population, the formation of new consumer habits, as well as the pace of lifting restrictions on cross-border travel,” Nabiullina said.
She also explained that price pressures can arise when demand recovers more quickly, but when supply is not keeping up. “But there are sectors in which the potential has really already been reached, and maybe even somewhere higher. This is construction in a number of regions, building materials, domestic tourism in a number of regions, we can say, but construction, maybe even in general in housing construction “, – added the head of the Central Bank.